Ed Egilinsky of Direxion pointed to the tightening labor market, the raging wildfires, and the emerging delta variant as possible factors that will push lumber prices higher.
"The losses we are seeing over recent months could soon enough bring another major buying opportunity for the bulls to come back into dominance," Joshua Mahony of IG said.
As the price of lumber stabilizes, more volatility lies ahead, and three factors will keep the red-hot commodity in high demand.
Commercial construction may be fueling demand this time around as the US economy makes its way to a full recovery, an analyst said.
Experts told Insider that the price of lumber could go down to $600 per thousand board feet in the next six months.
"I would not be surprised at all if we see the price continue to trail lower than $600 or below toward the year-end," Mace McCain of Frost Investment Advisors told Insider.
The price of a formerly cheap plywood substitute call oriented strand board has surged 97% since the start of the year.
Lumber future avoided their 10th straight down day on Tuesday recovering from as low as $944 per thousand board feet.
Lumber prices are now down roughly 40% from their May 7 peak, but are still up over 175% over the past year.
After a blistering rally, lumber prices have now fallen approximately 37% from May 7 record highs of $1,670.50 per thousand board feet.
Lumber prices avoided a seventh straight day of losses after spiking positive right before 3:30 pm ET.
"US duties on Canadian softwood lumber products are a tax on the American people," said Mary Ng, a Canadian MP, in a statement.
Lumber futures ended an 8-day pullback on Thursday, with prices rising from $1201 per thousand board feet to $1390 per thousand board feet.
After 2020's housing boom comes 2021's surge in home renovation. It's driving the economy, but many millennials are struggling to afford it.
Lumber futures fell to roughly $1,200 per thousand board feet on Wednesday continuing an 8-day rout for the commodity.
Lumber futures fell to $1,327 per thousand board feet on Monday in the sixth day of reprieve for home builders and renovators.
Kimberly-Clark, which makes Cottonelle and Scott toilet paper, announced it would be raising its prices in North America in June.